Private settlement during accident

[Fooblack]

I experienced just recently, that if you are involved in a private settlement and do not get black and white paper agreement with the other party, if you report the accident to your insurer, they will take away your NCD when its time for insurance renewal.

 

Reason given was "claim reserve" in case the other party decides to claim.

 

In the end I signed a indemnity agreement freeing my insurance of any liability in case a claim is made, just to preserve my NCD.

 

Just a note if you're involved in an accident and think it's "okay" - it may not be. Never ever trust the other party - not even your own insurance.

 

one thing to put on the agreement is both parties agree not to claim against one another and the settlement is final. This obviously doesnt close all the legal doors for an after-claim but makes really hard for the other side to think of a valid reasonable ground to do something funny.

 

Best thing to do is after the accident, just exchange details. Dun commit to private settlement yet. Go back get advise and then decide. if minor damage, can consider. That's what my fren in the industry told me cos if I claim insurance, this brings uncertaintly into the picture and we all know insurers will try to withdraw the NCD first pending the outcome. Worst case if that if you keep on doing claims, you will classified as a more unsafe driver and naturally your premiums will be priced higher, notwithstanding you are the victim in the accidents.